HBA-JEK S.B. 736 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 736
By: Duncan
Appropriations
5/2/2001
Engrossed



BACKGROUND AND PURPOSE 

The 76th Legislature established the self-directed semi-independent agency
pilot project (pilot project) to allow the Texas State Board of
Accountancy, the Texas Board of Professional Engineers, and the Texas Board
of Architectural Examiners to exercise greater budget flexibility, freedom
from certain state agency requirements, and general autonomy in the
operation of their respective agencies.  Although the pilot project was
scheduled as a four-year project, the agencies were unable to start the
project during the interim because allowances had not been made for agency
funds to be held outside of the state treasury.  Senate Bill 736 continues
the pilot project until September 1, 2005, and requires all fees and funds
from the pilot project to be deposited in the Texas Treasury Safekeeping
Trust Company. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 736 amends law to provide for the continuation and operation of
the Self-Directed SemiIndependent Agency Project Act and the continuation
of the Texas State Board of Public Accountancy, the Texas Board of
Professional Engineers, and the Texas Board of Architectural Examiners
until September 1, 2005.  The bill requires all fees and funds collected by
a project agency during the pilot project and any funds appropriated to the
project agency to be deposited in interest-bearing deposit accounts in the
Texas Treasury Safekeeping Trust Company (trust company).  The bill
requires the comptroller of public accounts to contract with the project
agency for the maintenance of the deposit accounts under terms comparable
to a contract between a commercial banking institution and its customers.
The bill requires unexpended fees of a state agency no longer having status
as a self-directed semiindependent project agency to be transferred from
the trust company to the state.  The bill appropriates an amount equal to
50 percent for each project agency to establish itself as self-directed
semi-independent after the conclusion of fiscal year 2001. 

EFFECTIVE DATE

September 1, 2001.